MEMORANDUMOF UNDERSTANDNG

BETWEEN

MTNISTRYOF RAILIilAYS
Ai\D

RITES LIMITED

FOR THB YEAR 2016.17

1ARTI - MISSION/ VISrcNdND OBIECTTVES

VISION

[ic the firLemostprovicler of techrro-economic seryices ancl soltttions globally irr the
sector'
andAssociatedlnltastructure
l ransnortatiotr

il,lISSIO.N

Pr.vicle conceptt6 col1itnissignipg consultancy,clesign,engineeringand tr"rrnkeySolutions

and
Infrastructure
k'owrecrge*unug.*.nt In the fierd of rransport,Trunrportution
inc,rurcling
standards.
reIatedtJc6nologieso I h i ghestprof-essional
assirnilatestate-of"the-an
ne\\, national,/ internatiorialtrends and practicesand
L.stabrlish
rechnologies qualityandvalueto client'
to provicle
in the
of National policies' priorities and strategies
tbr clevelopnrent
-l-ranspclrtatiott Infiastructulre
sector'
arrcl

OBJEC'TI\1ES
brandimage'
andcreatea distinctive
clientserviceoonsistently
olltstancling
Striveto tJeliver

satistaction
professional andbeiltga
to its employees
[]e irrriovative while strivingfor ensurittg
prel'clrcclelnploYer.

of thesocietyandcommunity.
anclfillfill the expectations
Assess

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 MoU of Rites Limited and Ministry of Railways (FY 2016-171
EVALUATION
CRITERIA& TARGETS

$.No. EvaluationGriteria Unit Wt MOUTarqets

Ex V.Good Good Fair Poor
t. Capacity Utilization:
NewOrdersSecureddurinothe vear Rs.Cr. 10 2000 1900 1800 1700 1600

il. 4.E[iS!9!9LPa rameters :

Completion of milestones in clients' o/o
10 100 90 80 70 60
assignments withouttime over run ( Top 4
Major Projectsgiven by Railway-List given
inAnnexure - A)
B. Technology Up- Gradation: date 5 15-02-17 29-02-17 10-03-17 20-03-17 31-43-17
lmplementationof ERP for monitoring of
Highway Design,Railway Civil Engineering
Design & Marketing& Clients Services units

ilt. Leveraging Net worth:

CAPEX(excluding
investment
in Rs.Cr. 15 20 1B 15 14 13
subsidiaries
andJVs)
tv. lVlonitorinqParameter:
Reduction in Trade Receivables of over € % 5 JZ 29 zo ZJ
monthsover oreviousvear
Iurnover from Operations :
Revenue from operation(Net of excise duty) R s .C r . B 1225 1'1s0 1'100 1000 900

vt. Ooeratino ProfiUSurolus:

Profit before tax (excluding other income, Rs.Cr. 10 270 250 225 200 175
extraordinary& exceptionalitems)
vil. EarlvSiqnsof Weakness:
Reductionin claimsagainstthe Company o/o 5 5 4
not acknowledgedas debts, over the
nrarrinr rq rrorr

viii. lMarketingEfficiency Ratio:

A. Manufacturingand repairing of railway N o s . 5 400 375 350 325 300
wagons in SAIL - RITES Bengal Wagon
IndustriesPVT. LTD. (a JV of RITES)
B. Trade Receivables as percentage 01 o/o
5 47 49 51 53
revenue from operations(Gross)
tx. Returnon Investment:
i. Dividend/PAT % 5 40 38 36 34 JZ

ii. PATiNetWorth % 10 14 12.50 12 '1.50

o/o 4.50 4.08
iii. Dividend/Networth 5.60 4.94 J.06

x, Sector Specific Parameters:

Completion of actionon part of RITESfor Daie 2 01.01.17 0 10 2 . 1 7 15.02.17 2 8 . 0 2 . 1 7 1 5 . 0 3 1 7
closureof RITESlnfrastructure
ServicesLtd

Total 100

1. Whereverthe figuresare not verifiablefrom the annualreport,the verification by

wouldbe doneon the basisof certiflcation
at the time of MoU Evaluation
wayof resolution regarding
achievement of the aboveparameterby Boardof Directors.
2. Targetsfinalizedby IMCare basedon provisional figuressubmittedby the companyfor FY 2015-16.In case of betterperformance of the CPSEduringthe
year2015-16 as compared to Provisionalfigures,the differencebetweenactualfiguresand provisional .
figuresshallbe addedto the targetsof 2016-17

3. Targetsdecidedin MoUare unconditional and no offsetwill be allowedin any condition.Furtherevaluationwouldbe subjectto complianceof additional
eligibility in para14.2and 14.3 of MoUguidelines
criteriaas contained 2016-17
/-l\ t.^ .
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r 'ur+L l , - r \ ' ' i . 9 z - :\ ( ' -
@ Secretary Ai. -Q-D
RitesLimited Ministryor naitGys /

, \ 1 t . i l

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ig"';'t/7ti t
 -l- I lnanclal r ea
S-l' Uunfutfi on Cri tcria Unit
. . 1 z0l6-17
zulS-ro 2015-l 6
2011-12 2012-13 2 0 1 3 - 1 4 2014-r 5 (Excellent
Upto Actual
Target)
Dee.
20r5

___-_t__
I actual

i) I CaPaci$'tltilizrttion
| {lbsorl orr Pnrt ,{) 3 1. 9 6 36.03
>----
J>")/ 29.35 3i . 9 0 l\t I I 16.83
I i i) Operating Rs/Lakh
'l'trt'ni>ret'i of
i I No.
i L}riplr.rvees 965 1497 2000
L--..-.-..---r
Rs./Cr r098 978 I0t8 1466.88
i I ii) Nelrvorder
i I iI;ULLICU
|---.-..---4---=--
I iil I llfficiencY
] I Paranrctet's
L-- --- I t!!rut!4!.psisl'iD- o -r0.21 3 0 . 21 2 8 .s3 J ,i.+ | 44.83 31.38
as
i I i;lManllolver cost
Ir Il '"' of oPerating
E.7U
,1 11 9.04 7,94
Plotit Rs /l-irkh 4,78 6.84 t.!)
I ii)Operatirrg
i I t\!i\ r\{'ljnrll{rvi-tes 20
j - - 1 - - ' - '
Nr\ 48.63 84.46 4/.J+ 5'7.6s
Rs./Cr NA
i iiil I cAF[x (r1.10 (r3.lo
t l uitv)
ecr eq Lritv)
100
_ _ i - ;--F .+0 r00 100 t00 r00 100
' ir I i P;.ri.l-urr C'aPita K S - / L T
Share 9
r840.1
'r) RtJCt t6r:1-[ioe.t.78 | t:re.eo tnt.ot--l1ei,).gz I tzo:.:o
i i r\r-:ctLrrlrtrlatctl
I i Rcserves | --l- 1 9 4 Ul .: J
.---'-l'- ---':=" I rnnr 1ul | 11()47R r396.60 1 6 2 8 . 0 7 t739.92 I 1803.30
i r it I N e tr , v o r t h N)./r'r I
rvt'r'-'
NIL NIL
NIL NIL NIL
I r ii) Bolrrlr'vins,s (shown Rs./cr
|
iri Ntlrt-cttrrettt
lNtt. lNlL
i l l
r I l-iabilitt') ----+- NA NA NA
o,,'o NA NA
r iiit t l t r r x r r v i r t g/ sN e t lr.ll INA
I . i l
48 28 38.56 35
47.6 rl9 5?
lr. I P c r ; e t r t i . l t l e s . i l ' r a l t l e 9o
() l' CAPEX
i contfactsiPfo.lects
I runniney'cornPlete(l
l dtrring the Yeaf
it ivithr-rut timeicosi
,
to toralVzrlue
i rlver't'Ltu
j ol' CAPEX corllrilcis
i lrurrningicotuPleted
i I dLrring lhe Yeal
i I (li'etluctionin'tr'r:rc!<
i I l l c c e i v a t r l cosv e t ' s i r
i innonths .vel
t l
I t l t . c v r o u s Y e Dl ' J L.---- t225
i
952.96 I 093.46 t 0 l 5 . l 7 5 ' 7 2 . 1 0 r086.s6
I\ |lteverrrreiiorn
t{s./CL
I 1835.6r
L I O n e r a t i o r(tC
s ross) 1086.56 1225
Rs.iCt 8_i,s.61 952.96 I 093.j+6 r 0 1 5l 7. 572.10
I \i I l{evettrte trotrt
Ii i O n e l a t i o n(sN e to f
l-QlqsiL"-
t,
t/.
r\
t'..
,,:l'-'"" ff\..^-'

-{..,t.;r',''-l'
 excisedufy)
Rs.iCr 256 345 386 4)O 227.79 5t4.57 400
xii Profit BeforeTax
xiii OtherIncome Rs.iCr
- Interest 66.03 8 0 .91 90.25 99.36 72.10 128.00 100.00
- Dividend 2.08 2.86 2.28 2.75 0 . 38 L28 1.00
- 30.35 39,'t9 60.24 48.72 l4:'18 .w.91 29.00
Other
- Total 98.46 122.84 t52.77 I50.8s 82.66 2D7.19 130.00
Xiv Extraordinary items Rs.iCr
Xv Exceotional Items Rs./Cr
Rs./Cr 157.52 222.23 305.2s 145.13 307.38 270
Xvi ProfitbeforeTax
(exclLrdingother
lncon'te,
Extraordinaly and
Exceptional items)
Rs./Cr t64.49 245.44 263.61 306,I 4 t47.31 338.92 264
Xvi Profit After Tar

130.41 127.13 143 t34 139.45 128.27

Xvi Revenuefrom % M . : 3

ii Operations
(Net)/TotalExpenses
(excludingextra
ordinary/exceptional
items,if shown
separately and Tax
(lncorneTax)
Experrses)
Rs.iCr -s8.12 24.t1 t7.19 6.66 9.30 I1.41 l5
X i x Closinglnventoryof
flnishedsoods
Xx ClosingInventoryof Rs./Cr 25.42 33.95 41.08 38.22 42.99 37.21
rvork-i n-progress-
Consr"rltancy/Tumkey
290.t4 307.0s 404.61 149.23 2.60 185.94 300
X x i Saleof Products(Net Rs./Cr
of Exciseduty)
ExportSales
X x i Nunrberofdays of No.of t) 29 l6 l6 I 306 22 18.25
i lnventbry6f finished u)4^) ). , ^
goodsandWolk-in-
progressto Saleof
Products (Wherever
applicable)
X x i TradeReceivables Rs./Cr 130.77 125.97 170.03 t 51 . 9 8 222.96 209 2t0
ii (Gross)ofover 6
months
X x i TradeReceivables- Rs./Cr 266.39 319.63 359.98 416.48 5 18 . 9 6 575.60 550
Gross(Total)
as o/o 3r . 8 8 33.54 41.03 90.71 52.97 44.90
X x v TradeReceivables iZ.YZ
-arnontc,re nf

Revenuetiorn
(Gross)
Onerations
Xxv CashandBank Rs./Cr 5 3 1l 9 618.70 622.96 697.12 701.88 689.83 725
Balance
- OwnedFund
Xxv PATNet worth % 16.43 20.54 18.88 r8 . 8 0 8.47 18,79 13.61
ii

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D i v i d e n dI N e t \ \ ' o t t h
o r S u r p l L irN
s et
\\rolth
C ' l a i r nosg a l n stth e
('ontpanl ttol
asclebt
_tqL,!9I4gg9C
Cor,t.
Bv C'errtral
By State'
9Y11'..11.,- 568.76
By other 223.41 3??.?l )4). IJ

')i.-\ /
i-r-t Iv*p*.,:cost
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I

Annexure - A

LIST OF KEY PROJECTS

COMPLETIONOF MILESTONES Iry RAILWAY ASSIGNEDPROJECTSWITH9UT
TrME OVERRUT{

MOU - 2016-17

S.No. Name of Proiect Name of Client

01 Supplyof 120BG passenger coaches to BangladeshRailways
Bansladesh Railways
02 Setting up of Traction Alternator WestCentralRailway,
Factory at Vidisha, M.P. on a turnkey Jabalpur
basis
03 Gooty -Dharmavaramdoublingproject SouthCentralRailway
oflndian Railway
04 PendraRoad- Anuppur 3'o line project SouthCentralRailwaY
of IndianRailways

o
\S.Lnn-
[L*u
 MMITM

will consider
Ministryof Railrvays to RITESin :
providingassistance

i (a) Allotrnentof Railwayprojects of doubling/ 3'dlinewith assured ftrncts

availability
(b) EPC/ Turnkeyprojects- Raihvayworkshopson nominationbasis'
ii exporto1'rollingstock/ spares,lendservicesof its expertson continuousbasis.

1'he pertbslance of RI-I'ESwill be reviewedagainst-thetargetsgiven in this MOU

b),theCPSEBoardanclhalf yearlyby Ministryof Railways.
clLrarrerly

VWV'
-+.^-
=uG, >-\6
Chairman and Managing
Director/RITES
t**-
Secretary/RailwaYBoard

:e*
3